After Bureau De Change (BDC) operators were found culpable of several allegations and were denied access to dollars from the Central Bank of Nigeria (CBN) in 2021, the apex bank is restoring the old order.
The current Central Bank management reinstated their services once again, with plans to sell at least $20,000 to each BDC vendour.
Things like this confuse Nigerians and leave them asking questions about why such a decision was taken in the first place.
Just three years ago, Emefiele accused Bureau De Change operators of facilitating graft and corruption in Nigeria.
With that allegation, he withdrew the privilege of getting dollars from the central Bank of Nigeria. This forced many of them out of business since they had to source for dollars they offer their customers.
Have You Read: MPC: CBN Raises Interest Rate To 22.75% To Tame Inflation
CBN To Sell FX To BDCs
Three years later, Yemi Cardoso officially reinstated BDC operations across the country.
Backing its decision, the CBN said the move was to stabilise and increase the value of the naira.
The CBN also plans to reduce the gap between the official and unofficial foreign exchange rates.
This was contained in a circular released by the Apex Bank. It was signed by the director of trade and exchange dept, Hassan Mahmud.
The 1% Profit Margin
The circular revealed that the ongoing FX price distortions had been observed by the CBN.
This price distortion at the retail end of the market is feeding into the parallel market end further widening the exchange rate premium.
“To this end, the CBN has approved the sale of FX to eligible BDCs to meet the demand for invisible transactions.
“The sum of $20,000 is to be sold to each BDC at the rate of ₦1,301/$.
You May Also Like: Ban Use Of Dollars In Nigeria – Ned Nwoko Tells Senate
This represents the lower band rate of executed spot transactions at NAFEM for the previous trading day, as of today, 27th February 2024,” the circular read.
Also, the BDCs are directed to make Naira payment to CBN foreign currency deposit Naira accounts.
Furthermore, they are to submit confirmation of payment, afterwards.
With this development, there could be a drop in the exchange rate in coming days, once dispatch begins.
In Nigeria, people who seek dollar often prefer to patronise the BDCs since their demands are not stringent.
For this reason, experts have requested that banks should make access to dollars easier.
